Vodafone to sell NBN fixed-line services

Vodafone Australia has unveiled plans to offer fixed-line broadband services over the NBN before the end of next year.

CEO Iñaki Berroeta said in a statement that the “time was right” for Vodafone to transition from being a purely mobile player.

“It’s anticipated that four million Australian homes will be NBN-ready by the end of next year, so the project is reaching a scale where it provides the platform to deliver a service that complements our mobile network,” Berroeta said.

“This is a natural progression for our business, and we expect that through a fixed broadband service, Vodafone will become an even stronger competitive force in the Australian telecommunications market.”

Berroeta said that Vodafone’s fixed-line proposition would be based on “great service and value for consumers”.

However, it is likely to face strong competition from other non-traditional players also eyeing entry into the NBN market, including Woolworths, which is gearing up to break into the fixed-line space after several years offering mobile phone services.

The entry of a number of new, large service providers could also put further pressure on existing providers already struggling with the long-term economics of the NBN model.

NBN yesterday said it would try to cut fees it charges service providers further to encourage service providers to provision more capacity and therefore raise the quality of NBN services experienced by end users.